Cinema Ad Spend Up 18.5% in 2007

June 16, 2008

This article is included in these additional categories:

Media & Entertainment | Out-of-Home

The cinema advertising revenues of Cinema Advertising Council (CAC) members grew 18.5% in 2007, to $539,946,000 from $455,661,000 in 2006, according to a CAC report. CAC members account for some 82% of US movie screens, the organization said.

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On-screen advertising revenues – approximately 92% of total cinema advertising revenues – increased 18.5%, to $494,622,000 in 2007 from $417,401,000 in 2006, and off-screen revenues grew to $45,324,000 in 2007, an 18.5% increase from $38,260,000 in 2006, according to the report.

On-screen cinema advertising includes commercials airing in advance of movie previews and the feature presentation; off-screen revenues include those derived from audio programming, sampling, special events, concession-based promotions and lobby-based promotions.

Approximately 74% of total revenue is from national or regional advertisers, with growth attributable to increasing activity across a broad spectrum of national advertising categories, including Automotive, Broadcast/Cable, Government/Educational Institutions, Consumer Packaged Goods, Media, Movie Studios, Wireless, Retail/Stores and Telecommunications, CAC said.

CAC attributed off-screen revenue growth to advertisers’ using a variety of media options, including concession-area marketing (up 48%), in-lobby and in-auditorium audio programming (up 207%), and in-lobby sampling programs (up 374%).

Stu Ballatt, president and chairman of the CAC, noted that cinema advertising’s growth in 2007 was also buoyed by revenue growth in local advertising. Leading local advertising categories include Auto Dealerships, Education, Government Services, Media, Medical Health Services, Restaurants, Telecommunications and Universities.

“More advertisers are using cinema more frequently, committing ad dollars ‘upfront’ for multiple flights as cinema has proven its value and efficiency as a sustaining media,” said Ballatt.

“Further, many advertisers are taking advantage of the extensive off-screen options cinema has to offer; used in tandem through integrated campaigns, on-screen advertising combined with off-screen marketing in the theatre can, literally, double or triple the impact a brand can make on the moviegoer.”

The CAC report was independently tabulated by Miller, Kaplan, Arase & Co. LLP, CAC said.

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